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The impact of infrastructure investment on multidimensional poverty. Evidence from Chinese rural migrant workers

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  • Wu, Zhilin
  • Long, Haiming
  • Song, Hui

Abstract

Multidimensional poverty is an important issue of the world economy. The present paper uses data from China Migrants Dynamic Survey (CMDS) from 2015 to 2018 and macro data at the prefectural level to investigate the impact of infrastructure investment on multidimensional poverty of rural migrant workers. First, we find relatively high incidence of multidimensional poverty among rural migrant workers. Second, we find that infrastructure investment can significantly reduce poverty. Such result is robust after considering various forms of endogeneity and robustness tests. Government intervention strengthens alleviation effect of infrastructure investment on multidimensional poverty, whereas financial development weakens such effect. The multiplier effects and marginal benefits of infrastructure investment is relatively small at present, shown in the limitations in enhancement in social security and lodgment of rural migrant workers. Infrastructure investment related to transportation and telecommunication has the greatest effects in reducing poverty and the effects are stronger in regions with lower income.

Suggested Citation

  • Wu, Zhilin & Long, Haiming & Song, Hui, 2024. "The impact of infrastructure investment on multidimensional poverty. Evidence from Chinese rural migrant workers," Economic Systems, Elsevier, vol. 48(3).
    • Handle: RePEc:eee:ecosys:v:48:y:2024:i:3:s093936252400061x
    DOI: 10.1016/j.ecosys.2024.101239
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    More about this item

    Keywords

    Multidimensional poverty; Infrastructure investment; Government intervention; Economic development;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics

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